MNI BRIEF: Fed's Daly: 'Long Way To Go' on Rate Increases

Federal Reserve Bank of San Francisco President Mary Daly said Tuesday the Fed is "nowhere near almost done" in fighting inflation that's far too high, and dismissed market anticipation of interest-rate cuts next year.

"Our work is far from done, so we are still resolute and completely united on achieving price stability, which doesn't mean 9.1% inflation. It means something closer to 2% inflation, so a long way to go," she said in a LinkedIn interview. Fighting high inflation requires "raising and leaving the interest rate for a while" on hold.

She added the size of the September hike will depend on data. "We have a couple more inflation releases before the next FOMC meeting. We have a couple more labor market reports including one this Friday, and I really am looking to seeing what those data tell us about whether we can downshift a little bit the pace of rate hikes or if we need to continue." (See: MNI STATE OF PLAY: Powell Signals 75bp Sept Fed Hike Possible)